Theses and Dissertations

Author

Jihyun Lee

Issuing Body

Mississippi State University

Advisor

Petrolia, Daniel R.

Committee Member

Barnett, Barry

Committee Member

Coble, Keith

Date of Degree

1-1-2012

Document Type

Graduate Thesis - Open Access

Major

Agricultural Economics

Degree Name

Master of Science

College

College of Agriculture and Life Sciences

Department

Department of Agricultural Economics

Abstract

This thesis presents an analysis of subjective risk information and participation in the National Flood Insurance Program (NFIP). Data are taken from a survey of residents in flood-prone coastal regions in the southeastern U.S. Regression models are constructed to better understand factors affecting individuals’ perceived risk ambiguity related to flood risk and the role of risk preferences, risk perceptions, and especially risk ambiguity, on the decision to purchase flood insurance. This is the first study not only of the influence of risk ambiguity on NFIP participation, but also of the impact of using different risk perception measures. Results indicate that NFIP participation is significantly affected by mean perceived risk, but the influence of range/variance of perceived risk, which presents one’s perceived ambiguity, is mixed.

URI

https://hdl.handle.net/11668/20549

Comments

endogeneity||National Flood Insurance Program (NFIP)||probit with instrumental variable||subjective risk

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